by 
The Curious Bag
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A buyer and a seller can arrange a pro forma invoice in order to confirm their understanding of a transaction that will take place in the future.
Uses
A pro forma invoice can be used for customs purposes and to confirm an understanding between a buyer and a seller.
Considerations
While a pro forma invoice contains a good faith estimate, it is also possible that the terms of the invoice are subject to change.
Effects
A company will not record a pro forma invoice as either accounts receivable or accounts payable. This is part of the reason why it isn't considered a true invoice.
Benefits
A pro forma invoice confirms the agreement between a buyer and a seller and allows each side of the transaction to plan for the future.
Warning
While a pro forma invoice can be used to confirm a sale, the price can change depending on the terms agreed upon by the seller and the buyer. This is why it is crucial to always read over everything before making an agreement.
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